GrainCorp suitor quizzed on past

The US agribusiness giant Archer Daniels Midland has been forced to confront a history of alleged price-fixing and market-rigging as its seeks to win regulatory approval for its controversial takeover of GrainCorp

ADM has encountered intense questioning from a Senate estimates committee amid concerns that the $3 billion deal would put a foreign stranglehold on grain storage and infrastructure.

The company's grains boss Ian Pinner attempted to deflect the past accusations during occasionally hostile questioning, and has assured the committee that ADM is now a fundamentally different business.

Mr Pinner is in Australia to convince farmers and the Foreign Investment Review Board that the GrainCorp takeover will not leave them worse off.

He also has to win over politicians like Liberal senator Bill Heffernan, who has been digging into ADM's alleged history of price-rigging and corruption.

Senator Heffernan, himself a GrainCorp client, confronted Mr Pinner with a myriad of past accusations and proven incidents that go to concerns about ADM's ethics and market power.

"Sorry, no. The timeline's not of that much interest, we're actually trying to get a sense of the company, where it's been, where it is now, in terms of fit and proper," Senator Nash said.

ADM is also trying to hose down concerns that grain grower access to storage and transport infrastructure that comes with the deal.

ADM says its committed to fair and open dealing, and plans to ramp up its infrastructure spending to $300 million.

But once again Senator Heffernan suggested the deal would hurt rather than assist farmers.

He also wanted assurances that A-D-M was committed to paying its fair share of Australian tax if the deal goes through, given recent allegations that giants like Apple and Google have been avoiding it.

"We hope we don't put the hurdles too high for you but we, also in your aspiration, we want to include a national interests benefit and make sure you pay your tax and all the rest of it," he said.

"God bless you and get on that plane and have a safe journey."

"We will pay our tax, chairman, we can assure you of that," Mr Pinner replied.

The Senate grilling was a warm-up for what might be in store for ADM as it works to convince the Foreign Investment Review board that the GrainCorp takeover passes the national interest test.

The Treasurer Wayne Swan gets the final say.

But unless there is a decision by the 12th of August when the government goes into caretaker mode, a potential Coalition Treasurer could be influenced by National Party concerns.